EURUSD falls back to the key swing area. Can support hold?

In an earlier post, I spoke to the selling seen in the EURGBP. It is tumbling lower today and as such, that tail is wagging the dog. Putting it another way, the EURGBP EUR/GBP The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur Read this Term is influencing the price action in the EURUSD today.

At the start of the New York session (see video HERE), the price had rebounded off of a swing area between 1.0747 and 1.0759 in the European session and was back up testing a higher swing area between 1.0777 and 1.07865. Getting above 1.07865 would have opened the door for a rotation toward key resistance at 1.0810 where the 100-day moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term and the 38.2% retracement of the move down from the end of April high.

Given the EURGBP downward price action, that could not happen. The price has now moved down to test the low of the aforementioned swing area at 1.0747.

It's decision time now for buyers and sellers.

• Move below 1.0747 and we could see further downside probing with the rising 100-hour moving average at 1.0723 a potential target.
• Stay above the move back above 1.07594, and the pressure is off with 1.07865 and 1.0810 as potential topside targets.